HiTech, Inc. (Ticker: HT) is an all equity firm.In 2020HT had net income of $600 million and operating income (EBIT) of $1 billion. HT had depreciation of $400 million and capital expenditures of $400 million. Working capital needs are thought to be negligible. HT's cost of equity is re= 13%.The tax rate is 40%.The next7questions pertain to HT:

 

Based on the above information, HT's WACC is _________%.

If HT is expected to grow their FCFF at 20% for the next two years and at 5% per year thereafter,HT's FCFF is expected to be _________million $in 2021.

Additionally, HT's FCFF in 2022 is expected to be _____________ million $

Answer rating: 100% (QA)

To calculate HTs Weighted Average Cost of Capital WACC we need to determine the cost of equity a... View the full answer